A UAE-based bank has been punished by the Central Bank of UAE to fail to follow the Sharia regime requirements. Disciplinary action includes a six -month ban on the financial penalty of DH3,502,214 in disciplinary action.According to a CBUAE statement, the restrictions told the supervisory examinations that the Sharia regime of Islamic banking services highlighted the bank’s non-transportation. In these examinations, a violation of other legal provisions applicable to financial institutions in the country was also found.
Legal basis and regulatory reference
The fine was imposed under Article 137 of the Dicratal Federal Law Number (14) of 2018, outlining the role of a central bank in the regulation and supervision of financial institutions within the UAE. This law also covers the organization and supervision of financial activities, including Islamic banking, and allows CBUAE to take necessary action in cases of misconduct or non-non-compliance.CBUAE has not disclosed the name of the bank, but made it clear that the violation is particularly related to Sharia compliance, a main requirement for institutions offering Islamic financial services in the country.
Commitment to Central Bank’s integrity and transparency
In its official statement, the Central Bank confirmed its commitment to maintain transparency, integrity and regulatory compliance in the UAE financial system. It emphasized that all licensed financial institutions are expected to fulfill legal standards, especially those who apply to Sharia-Anupal Husbandry Banking.The statement said, “CBUAE is committed to ensuring that all licensed financial institutions working in UAE follow the legal and regulatory standards established to maintain transparency and integrity in the banking sector,” the statement says.This enforcement action is part of CBUAE’s ongoing efforts to maintain financial stability and public belief in the banking sector. By implementing such regulatory measures, the aim of the central bank is to preserve the sound of the country’s financial institutions and strengthen the reliability of Islamic banking in the United Arab Emirates.
